Does Your Net Promoter Score Matter?

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Your Net Promoter Score (or NPS), can be summed up as a measurement of how likely a customer is to recommend your business to a friend. Businesses ask their customers the familiar question: “How likely are you on a scale of 0-10 to recommend our products or services?” Customers who indicate 0-6 are called detractors, 7-8 are neutral, and 9-10 are known as promoters. Subtract the percentage of detractors from the percentage of promoters to reveal your NPS. Here is why NPS is an important measurement for your business.

Online Reputation

Word-of-mouth is a powerful tool for businesses and NPS can show you whether the talk is positive or negative. There is no marketing campaign a business can launch that will ever outshine a trusted recommendation from a friend. The same logic can be applied to online review sites – the first step in the decision making process for many people. After identifying the promoters in your customer base, encourage them to leave a review of your business. Their positive reviews signal to others that your business is trustworthy and values customer service.

Referral Boost

Research has proven that referred customers provide a greater ROI than other customers –16% over the customer’s lifetime. This is likely explained by the fact that referrals arrive in your office with pre-established trust in your business, trust that you would typically have to earn with other customers. These customers are also likely to be more receptive to upsells of other products and services that you may offer. Your NPS can help bring in more referrals by identifying promoters and leveraging their customer satisfaction to your benefit.

Improves Churn

Customer churn is a problem that businesses of all sizes deal with everyday. Disappearing customers can be a tough blow to your business’ morale, particularly for small businesses. NPS is useful in combating churn because it allows you to identify and reach out to your detractors. Following up with those unsatisfied customers will make them feel heard and appreciated, which is usually enough to prevent churn. Resolving these issues also helps to turn a detractor into a promoter. By using NPS, you can identify the root cause of churn and stop it before it happens.

First-class customer service is one of the main goals of all businesses. NPS will help your business reach that goal by showing your your business the path forward to improve and maintain customer satisfaction.

Customer service advice for small businesses

If you’re a small business such as a dentist, medical specialist, auto shop, hairstylist, or veterinarian, you know how important each customer is to your bottom line. You can’t afford to lose a customer or patient due to a bad experience, and many of your customers might come to you specifically because they want the “white glove” customer support you can give them.

Every small business should strive to provide best-in-class customer support to its clients. The business that can make its customers feel special is the one who will foster loyalty and return visits. Additionally, your reputation – both online and via word-of-mouth marketing – will improve.

A Starter Guide: Customer Service Advice for Small Businesses 

Treat every client like they’re you’re only client… to a point

For any business, quality customer service and support are vital in keeping customers happy and willing to recommend you to their family, colleagues, and friends. If you strive to treat every client like they’re your only client, it’s a win-win. Just make sure you’re not neglecting other clients. Some advice:

  • If you can, assign a Customer Success Representative to each client, and try to have this be the point of contact for that client. Establishing a consistent representative for your business can help make your customer feel more comfortable and understood.
  • Avoid canned responses, and when possible, tailor your communications directly to your client, making sure to keep their preferred communication method and channel in mind.

Set boundaries and expectations… make sure you’re on the same page

If you’re going to grow your business, you need to recognize that some customers are better for your business than others. What this means is that as long as you show respect for your customers and treat them well, they will (and should) respect you and how you run your business. This is the customer that will help you grow, and the kind you want to keep coming back. If you don’t set boundaries with your customers, they can end up creating unneeded stress and consuming valuable time. Some advice:

  • You don’t need to be a 24/7 business if that doesn’t fit within your business model. It’s important that you run your business on your own terms and establish a clear day-to-day schedule with your customers. If you continue making exceptions, your customers might understandably not even know when you are truly open, and continue to expect “after hours” service.
  • Keep your business listings online up-to-date and send out text and/or email communications to your customers when you have modified or changing hours.

Handle things promptly… remember who your audience is

When you’re dealing with anything on social media, it’s critical to always respond quickly and in a professional manner. According to some studies, over 67 percent of Internet users are on social networks, and this means that you need to develop strong relationships with your customers on and offline. Think of it like a relationship: if one side thinks the other isn’t communicating, listening, or engaging, then a breakup might be on the horizon. Remember…

  • On social media, silence leads to losing customers – no response, or a slow response, can be read as apathy or coldness by customers
  • You don’t need to respond seconds after a post, but you should respond. Some incentive? A Harris study showed that 18 percent of people who posted negative reviews and received a reply went on to become loyal customers. And 70 percent reversed the content, either by deleting the negative comment or posting a follow-up positive one. 

It never hurts to ask… for referrals and testimonials 

If you’ve been in business for more than a few months, you probably know that referrals are one the most effective ways to grow your business and attract new, loyal customers. However, you also may HATE asking for referrals, or just not know how. Don’t assume that your customers will just talk about your business, and your great customer service. Remember: the more you ask for referrals, the more you’ll get. Here are some tips:

  • Make asking for a referral part of your routine. With some systems, like Demandforce, you can automatically send a referral follow-up to customers who have just visited your business. These are great ways to not only collect feedback on how you’re doing, but also allow your customers to review you and post those reviews online. Remember that most people like to help out others, especially if it’s not a complicated process.
  • Combine asking for referrals with requesting testimonials – consider creating testimonial cards that you can pass out at your front desk, so that someone can write one and then either drop it in the mail, or email you back. You can also send a targeted email requesting a testimonial or feedback from customers who have rated you highly in a review.

Looking for more advice on how to provide best-in-class customer service? It’s always a good idea to improve your communications, and Demandforce can help. Contact us today to see a demo. We believe in stellar customer service as well! Every Demandforce customer is paired with a Customer Success Manager, who will help you set up and optimize any and all Demandforce features to best suit your business and business goals. Call us at (888) 272-7821, or visit demandforce.com.